M&A Deal Summary

Francisco Partners and Golden Gate Capital Acquire GXS

On June 24, 2002, private equity firms Francisco Partners and Golden Gate Capital acquired information technology company GXS from General Electric for 800M USD

Acquisition Highlights
  • This is Francisco Partners’ 1st and Golden Gate Capital’s 3rd transaction in the Information Technology sector.
  • This is Francisco Partners’ 9th and Golden Gate Capital’s 9th largest (disclosed) transaction.
  • This is Francisco Partners’ 5th and Golden Gate Capital’s 6th transaction in the United States.
  • This is Francisco Partners’ 1st and Golden Gate Capital’s 1st transaction in Maryland.
Investment Fate
  • GXS was sold to a publicly-traded strategic buyer in 2013 for 1.2B USD.

M&A Deal Summary

Date 2002-06-24
Target GXS
Sector Information Technology
Buyer(s) Francisco Partners
Golden Gate Capital
Sellers(s) General Electric
Deal Type Divestiture
Deal Value 800M USD

Target

GXS

Gaithersburg, Maryland, United States
GXS is a leading global provider of B2B e-commerce solutions operating the world’s largest and most expansive network of integrated business communities. Organizations worldwide, including more than 70 percent of the Fortune 500, leverage the on-demand services on GXS Trading Grid® to extend supply chain networks, optimize product launches, automate warehouse receiving, manage electronic payments and gain supply chain visibility. GXS Managed Services, GXS’ B2B outsourcing solution, empowers customers with the expertise, technical infrastructure and program support to conduct B2B e-commerce with trading partners globally. Based in Gaithersburg, Md., GXS has an extensive global network and has local offices in the Americas, Europe and Asia-Pacific regions.

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Buyer(S) 2

Buyer

Francisco Partners

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 45.0B USD
Size Mega
Type Sector Focused
DESCRIPTION
Francisco Partners' headquarters in San Francisco, California.
Francisco Partners' headquarters in San Francisco, California.

Francisco Partners is a private equity firm focused exclusively on investments in technology and technology-enabled services. Specific areas of interest include semiconductors, capital equipment, electronics components, systems and manufacturing, IT services and business process outsourcing, communications, security and enterprise applications, and infrastructure software. Prospective investment situations include divisional buyouts, growth equity financings, acquisitions of private companies, sponsored mergers and acquisitions, and take-privates. Francisco Partners looks for opportunities where it can commit a minimum of $100 million per investment. Francisco Partners was formed in 1999 and is based in San Francisco, California.


DEAL STATS #
Overall 5 of 157
Sector (Information Technology) 1 of 28
Type (Divestiture) 2 of 31
State (Maryland) 1 of 2
Country (United States) 5 of 131
Year (2002) 1 of 2
Size (of disclosed) 9 of 30
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2001-03-20 AKQA Holdings

San Francisco, California, United States

AKQA provides consulting, customer relationship management, digital product design and e-commerce solutions to the world's leading brands. An independent firm, AKQA employs over 350 people worldwide and has offices in London, San Francisco, New York, Washington DC and Singapore.

Buy $71M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2002-11-18 Ultra Clean Holdings

Hayward, California, United States

Ultra Clean Holdings is a developer and supplier of critical subsystems for the semiconductor capital equipment, medical device, energy, research, and flat panel industries. Ultra Clean Holdings was founded in 1991 and is based in Hayward, California.

Buy -
Buyer

Golden Gate Capital

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2000
PE ASSETS 19.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Golden Gate Capital is a large private equity firm focused on buyout and growth equity investments across a wide variety of industries. The Firm partners with management teams to make equity investments in situations where there is a demonstrable opportunity to significantly enhance a company's value. Sectors of interest include software and IT services, semiconductors, electronics, consumer products and retail, financial services, business services, and media. Prospective transaction types include public-to-privates, corporate extractions, bankruptcy auctions, and recapitalizations. Golden Gate Capital was formed in 2000 and is based in San Francisco, California.


DEAL STATS #
Overall 8 of 112
Sector (Information Technology) 3 of 9
Type (Divestiture) 2 of 15
State (Maryland) 1 of 3
Country (United States) 6 of 100
Year (2002) 4 of 4
Size (of disclosed) 9 of 23
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-06-03 Infor Global Solutions

New York, New York, United States

Infor Global Solutions, Inc. is a global provider of enterprise business solutions to select manufacturing and distribution industries. Infor Global Solutions, Inc. was formed in 2002 and is based in New York City.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-01-17 Lexicon Marketing

Los Angeles, California, United States

Lexicon Marketing LLC is a developer and marketer of English learning program.

Buy -

Seller(S) 1

SELLER

General Electric

Boston, Massachusetts, United States

Category Company
Founded 1892
Sector Diversified
Employees205,000
Revenue 67.6B USD (2023)
DESCRIPTION
General Electric office in Dubai, United Arab Emirates.
General Electric office in Dubai, United Arab Emirates.

General Electric is a diversified technology and financial services company. Products and services range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. General Electric was founded in 1892 and is based in Boston, Massachusetts.


DEAL STATS #
Overall 3 of 45
Sector (Information Technology) 1 of 2
Type (Divestiture) 3 of 38
State (Maryland) 1 of 1
Country (United States) 3 of 35
Year (2002) 1 of 1
Size (of disclosed) 11 of 22
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-02-13 Betz-Dearborn

Trevose, Pennsylvania, United States

Betz-Dearborn Inc. is a producer of chemicals used principally in water-treatment and industrial processes.

Buy $1.8B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-09-25 GE Superabrasives

Worthington, Ohio, United States

GE Superabrasives , Inc. is a manufacturer of diamond, cubic boron nitride, and polycrystalline products. GE Superabrasives works directly with the end users to develop products and applications.

Sell -